Correlation Between Alchemix and AERGO

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Alchemix and AERGO at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Alchemix and AERGO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alchemix and AERGO, you can compare the effects of market volatilities on Alchemix and AERGO and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Alchemix with a short position of AERGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alchemix and AERGO.

Diversification Opportunities for Alchemix and AERGO

0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Alchemix and AERGO is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Alchemix and AERGO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERGO and Alchemix is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Alchemix are associated (or correlated) with AERGO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AERGO has no effect on the direction of Alchemix i.e., Alchemix and AERGO go up and down completely randomly.

Pair Corralation between Alchemix and AERGO

Assuming the 90 days trading horizon Alchemix is expected to generate 5.74 times more return on investment than AERGO. However, Alchemix is 5.74 times more volatile than AERGO. It trades about 0.03 of its potential returns per unit of risk. AERGO is currently generating about -0.03 per unit of risk. If you would invest  0.00  in Alchemix on February 21, 2022 and sell it today you would earn a total of  3,176  from holding Alchemix or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy29.96%
ValuesDaily Returns

Alchemix  vs.  AERGO

 Performance (%) 
      Timeline 
Alchemix 
Alchemix Performance
0 of 100
Over the last 90 days Alchemix has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's fundamental indicators remain somewhat strong which may send shares a bit higher in June 2022. The current disturbance may also be a sign of long term up-swing for Alchemix investors.

Alchemix Price Channel

AERGO 
AERGO Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in AERGO are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, AERGO may actually be approaching a critical reversion point that can send shares even higher in June 2022.

AERGO Price Channel

Alchemix and AERGO Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Alchemix and AERGO

The main advantage of trading using opposite Alchemix and AERGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alchemix position performs unexpectedly, AERGO can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AERGO will offset losses from the drop in AERGO's long position.
The idea behind Alchemix and AERGO pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center. Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go